University Sains Malaysia - School Of Management

Environmental Management System (EMS) Certification and its Impacts on Firms´Performance in Malaysia

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Courtesy of University Sains Malaysia - School Of Management

ABSTRACT

This research will study the impact of ISO 14001 certification on firms’ performance in Malaysia such as economic, environmental and customer satisfaction. Although the ISO 14001 standard on environmental management systems was introduced in 1996, to date there has been very few empirical studies examining the impact of the standard on corporate performance. Our study addressed this as well as other related issues of ISO 14001 by using certified companies in Malaysia as survey sample. Specifically, our research examined the impact of ISO 14001 certification on the company’s environmental as well as economic performances. Consistent with prior studies, our results revealed that certification impacts positively on both the environmental and economic performances of enterprises. Respondents perceived 'enhanced corporate image' as the strongest impact of certification and believe that the benefits obtained from EMS certification are far outweighing its implementation cost. This research was based on ISO 14001 certified companies located through out Malaysia. Questionnaires were used as the main research instrument. The SPSS software was used to analyze the data obtained from the questionnaires and to test the hypothesis put forward. The results of the analysis show that ISO 14001 certification gives positive effects on the firm’s performance.

Key words: Environmental Management System (EMS), firms’ performance, Malaysia

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